Marc Faber sees value in gold miners

Doom master Marc Faber expressed his ideas at the Barron's Roundtable 2014, Marc Faber does, however, lean against Felix Zulauf's recommendation to short the Hong Kong ETF (EWH) as a play on a credit bust in China. Property companies are a big component of the Hong Kong stock market, says Marc Faber, and may have already priced in an implosion as they're selling for just 40-50% of asset values. "I would rather buy Hong Kong shares and short the Nasdaq," says Marc Faber.

It goes without saying that Faber is bullish on gold, but he's a bigger fan of the miners (GDX) recently. Marc Faber is probably bullish on the miners as they are selling at a discount to gold. There is also fast pace of insider buying in the industry. A member of the board at Sprott, Faber says Eric Sprott has been selling company stock to buy shares in small miners (GDXJ). "If the gold price goes up 30%, Sprott's shares might double, but mining stocks could go up four times."

Marc Faber is a great contrarian investor and publisher of the Gloom Boom & Doom Report. He is well known for his accurace predictions of stock market crashes and other correct calls on different investment assets.

Faber: The market may rise by 20% before the crash

Marc Faber, publisher of The Gloom, Boom & Doom Report, and known " bearish " investor attitudes, told CNBC, that massive speculative bubble of emergency liquidity is hanging over everything - from stocks and bonds to agricultural land and the virtual currency Bitcoin.

Faber says that the markets have reached record levels can rise even before the bubble burst , if you continue the program of the Federal Reserve massive bond purchases , as well as ultra-low interest rates.

"The market may rise by 20 % before the crash. Maybe more if you continue printing money, "said Faber.

He cautions investors that may see disappointing stock returns over the long term.
"Agricultural land has appreciated ten times in the last 10 years, and Bitcoin are up and who knows what are the limits," says Faber.


In recent interviews he predicted that European stocks will perform better than those of the U.S. and emerging markets.


Faber also believes that the credit boom in China puts the world in a worse situation than before the global financial crisis in 2008.

Marc Faber is a great contrarian investor and publisher of the Gloom Boom & Doom Report. He is well known for his accurace predictions of stock market crashes and other correct calls on different investment assets.

Mark Faber Fears "Stocks Could Be Dead Money For A While" But "Gold Has Bottomed"

"Since September 2011's $1921 peak, gold has been in correction mode," Mark Faber tells Barrons in this brief clip, but the overhwleminly bearish sentiment combined with the major accumulation (most notably by China) means "gold prices have probably bottomed," and some gold mining stocks are well positioned. While Faber has recently expressed concern at the potential for a major correction in stocks, he notes that there are pockets of value worth investigating including European Telcos and Indo-China travel-related stocks. However, the Gloom, Boom & Doom report writer warns that "stocks could be dead money for a while."

On Gold and Gold Miners:

Gold peaked at $1,921 an ounce in September 2011. Since then, it has been in a correction mode. Sentiment is bearish, but some countries are accumulating gold, notably China, which will buy an estimated 2,600 tons this year, exceeding annual production. Prices probably are bottoming.

Gold-mining shares aren't expensive either, although many exploration companies won't make it. If you buy the miners, look for companies that have raised capital already or have sufficient reserves. They are best-positioned to survive the next few years if there is no upturn in the gold price.

Full Barrons' Interview below:



Marc Faber is a great contrarian investor and publisher of the Gloom Boom & Doom Report. He is well known for his accurace predictions of stock market crashes and other correct calls on different investment assets.